July 27 (UPI) — Releasing millions of barrels of oil from the U.S. Strategic Petroleum Reserve has likely reduced the price of gas at the pump by up to 40 cents per gallon, according to Treasury Department estimates.
The announcement comes as the federal government began releasing the Notice of Sale for an additional 20 million barrels of crude oil from the reserve into the global market.
In March, President Joe Biden announced he would release 1 million barrels of oil per day from the reserve in an effort to combat rising gasoline prices. To date, more than 125 million barrels of oil have already been sold.
Since Biden authorized the historic release of one million barrels per day from the SPR earlier this spring, the Department of Energy has already sold more than 125 million barrels into the market, including nearly 70 million barrels that have already been delivered to purchasers.
Additional barrels are planned to be delivered to customers in the weeks and months to come.
“This is the fifth sale that the president has authorized to shore up crude oil supplies in response to (Vladimir) Putin’s war in Ukraine by releasing one million barrels per day into the market. The Administration expects to continue to deliver barrels for several more months,” the White house said in a statement on Tuesday.
The cost of gas in the United States declined by a few cents per gallon on Tuesday, which experts partly attribute to Americans driving less.
The national average on Wednesday was $4.30, according to AAA — 5 cents lower than Monday and 19 cents cheaper than the average a week ago. A month ago, the average was $4.90 per gallon.
Since peaking at just over $5 per gallon in June, prices at the pump have been coming down over the past few weeks.